Singapore overall market sentiment has registered signs of recovery in developers’ sentiment, despite pessimistic outlook, according to Real Estate Sentiment Index (RESI) for the second quarter of 2016.
The composite sentiment index in second quarter of 2016 climbed at 4.2 from 3.8 in the previous quarter, by which the sluggish sentiments has lifted after 11 consecutive quarters. The current real estate sentiment index rose to 4.3 in second quarter of 2016 from 3.9 in the previous quarter, while for future sentiment index, an increased of 4.0 in second quarter 2016 from 3.6 in first quarter 2016.
For the next six months, about 64.7% of the property developer believed that the number of new launches will be at the same level with second quarter of 2016. More than half of the developers expected a moderate fall of prices in residential property for the next second half of 2016.
According to the surveyed in 2Q16, about 94.7 percent of the respondents expect the slow down in global economy, while 70.2 percent of them named slumps in domestic economy and job losses as 2 possible risk factors in the second half of the year.
With 2016 economic growth of Singapore adjusted further downwards and no relaxation yet on the cooling measures from the government, 56.1 percent of the respondents expect to have moderate hit on prices and unsold units in year 2017.